- WTI prints four-day winning streak after refreshing two-month high the previous day.
- Saudi Arabia stands ready to balance the oil market, cited covid burden on demand, OPEC+ looks to delay supply increase.
- US dollar strength, cautious sentiment challenge the upside moves.
- EIA Crude Oil Stocks Change likely to recover in the week ended on November 06.
WTI steps back from the intraday high while declining to $41.94, up 0.40% on a day, during the early Thursday. The black gold recently gained bids as headlines concerning the demand-supply outlook triggered a bit of optimism. However, the US dollar strength and challenge to the risk probe the oil buyers.
Saudi Arabian King Salman’s comments citing efforts to guarantee oil supply stability amid the coronavirus (COVID-19) times initially weighed down the energy benchmark before bouncing off on the hints of Saudi-Iran tension.
Following that, Bloomberg came out with the news suggesting that the OPEC+ leaders are set to delay the planned hike in oil supplies by the major producers by three to six months. The oil major including Russia was initially expected to announce the gradual reduction in the output cut plan in early 2021.
The US dollar index (DXY) stays positive near one week high as risks dwindle on the COVID-19 woes, Sino-American and the Aussie-China tensions. Also weighing on the greenback could be the recently weaker US 10-year Treasury yields, currently down five basis points (bps) to 0.937%.
Moving on, the weekly official oil inventory update from the Energy Information Administration (EIA) will provide more clarity to the energy bulls. The forecasts suggest improvement in the stockpile from -7.998M to -0.913M, which if matched could probe the WTI buyers.
Technical analysis
Break of an ascending support line from Monday probes a three-day-old horizontal line around $41.55, which in turn holds the gate for further weakness towards a joint of 200-bar SMA and a nine-day-old rising trend line, at $39.50 now.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD awaits RBA Meeting Minutes for direction
The AUD/USD pair retreated from above 0.6700 and trades around 0.6670 early in Asia, following clues from Gold price in the absence of other news. Australia will publish Westpac Consumer Confidence and RBA Minutes early on Tuesday.
EUR/USD consolidates ahead of 1.0900
The EUR/USD pair failed to grab speculative interest’s attention on Monday and consolidated at around 1.0860. Federal Reserve officials keep flooding the news, but so far, failed to spur some action.
Gold retreated from record highs, maintains the upward bias
Gold rose sharply at the beginning of the week on escalating geopolitical tensions and touched a new all-time high of $2,450. With market mood improving modestly, XAU/USD erases a majority of its daily gains but manages to hold above $2,400.
Ethereum poised for high volatility as SEC may ‘slow play S-1s’ filings
Ethereum's (ETH) price movement on Monday reveals traders' uncertainty following Grayscale CEO's departure and expectations that the Securities & Exchange Commission (SEC) would deny applications for spot ETH ETFs this week.
Signed into law: Alabama abolishes income taxes on Gold and Silver
On May 14, 2024, Alabama Governor Kay Ivey signed a bill that removes all income taxes on capital gains from the sale of gold and silver, enabling the state to take an important step forward in reinforcing sound money principles.